Friday, October 1, 2010

Postal sinkhole

The Wall Street Journal mentioned the other day that postal workers make on average $83,000 per year. This is 50% more than the average private sector wage. This astronomical amount would be along with the best benefits and retirement programs going. Think of a typical hierarchy employment structure with 6-8 employees per manager and you will get the idea. Since the Postmaster General only makes around $450,000, getting the average up to $83,000 means that average line job folks are making a ton of money.

The typical college graduate is going to work for $35,000 to $40,000 in small business America, and they usually pay for half their own medical and have no pension plan.

I don't believe that the line jobs of mail sorting, postal office clerk and delivery are sufficiently skilled to command that kind of differential. Mismanagement by generations of Post Office managers have let the wage rates get out of control. If you offered the jobs up for half the current pay and benefits they would all be filled immediately - the surest sign of overpay.

Accurate Reality: If you don't feel like there is enough money to spend on the things government needs to do in the United States, look no further than misallocation of resources and mismanagement of government programs.